Fresnillo FRES.L
Fresnillo is a Mexican mining company dedicated to the extraction and production of precious metals, mainly silver and gold, with operations in Mexico. Fresnillo shows solid financial health (net cash, ND/EBITDA -0.41) and exceptional quality (ROE 52.98%, operating margin 63.05%), but its valuation (P/E 11.56) and growth (earnings +227.6%) are at a cyclical peak, with risk of normalization in precious metals prices.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Fresnillo is a Mexican mining company dedicated to the extraction and production of precious metals, mainly silver and gold, with operations in Mexico. Fresnillo shows solid financial health (net cash, ND/EBITDA -0.41) and exceptional quality (ROE 52.98%, operating margin 63.05%), but its valuation (P/E 11.56) and growth (earnings +227.6%) are at a cyclical peak, with risk of normalization in precious metals prices.
Score by category
| Category | Score |
|---|---|
| Financial health | 9.0 |
| Quality / Moat | 8.8 |
| Valuation | 5.2 |
| Growth | 7.2 |
| Dividend | 4.8 |
| Momentum | 7.7 |
| Risk & Context | 4.8 |
OVERALL SCORE: 6.9/10
Context and risks
Elevated governance risk in Mexico. Fresnillo operates primarily in Mexico, with exposure to regulatory, fiscal, and security risks in the country.
News considered in the analysis
- Mining Stocks Slide as Metals Prices Fall — La caída de los precios de los metales presiona directamente los ingresos de Fresnillo, aunque el efecto ya está parcialmente reflejado en el precio de la acción.
- Basic Materials Roundup: Market Talk — Resumen de mercado sin información específica nueva sobre Fresnillo.
- Will La Colorada Mine Strengthen PAAS' Long-Term Growth? — Noticia sobre un competidor (Pan American Silver), no sobre Fresnillo; sin impacto directo.
- European Indexes Largely Higher at Open — Movimiento general del mercado sin relevancia específica para Fresnillo.
- European Indexes Mixed as Tech Stocks Rise, Miners Fall — La debilidad del sector minero en Europa refleja la presión sobre los precios de los metales, afectando a Fresnillo.
Verdict: Hold; quality is high, but the cyclical peak and governance risk in Mexico limit attractiveness at these levels.
Main risk: The main risk is the normalization of silver and gold prices, which would reverse current earnings and revenue growth, along with governance risk in Mexico.
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